CASE 3.7 Saks Fifth Avenue 1. In your opinion, was Saks zero-tolerance policy for employee theft reasonable? Was the policy likely cost-effective? Defend your answers.

2. Did Saks anti-harassment policy and the related complaint procedure qualify as internal controls? Explain.

3. Identify five control activities that you would commonly find in a mens clothing department of a major department store. Identify the control objective associated with each of these activities.

4. Should a companys independent auditors be concerned with whether or not a client provides a non-hostile work environment for its employees? If your answer is yes, identify the specific audit issues that would be relevant in this context.